Organisational Structure (Quick Revision)

Question 1

Define: Organisational Structure

Answer 1

The organisational structure is the way in which jobs are organised (e.g. who reports to whom).

Question 2

What is meant by the span of control?

Answer 2

The number of employees reporting directly to a superior.

Question 3

What is a functional structure?

Answer 3

An approach where jobs are grouped according to their function.

Question 4

What is a Matrix structure?

Answer 4

An approach that cuts across traditional functions and in which individuals report to more than one boss.

Question 5

State two reasons why an effective organisational structure is important.

Answer 5

• Affects the speed of decision making and efficiency.

* Can affect the quality of service provided.

Question 6

What is the Examiner’s note for Organisational Structure?

Answer 6

Organisational structure involves decisions regarding:

• Job design
• Levels of hierarchy
• Span of control

And…

• The grouping of jobs

The structure may need to change as the organisation grows.

Question 7

What is the Evaluation point for Organisational Structure?

Answer 7

Organisational structure can help a firm to be more competitive, but success also depends on:

• The product itself
• The marketing

And…

• The way the product or service is produced.